REPORT TO THE CITY COUNCIL
FROM: JERRY P. DYER, Mayor
Office of the Mayor & City Manager
BY: KELLI FURTADO, Chief of Staff
Office of the Mayor & City Manager
SUBJECT
Title
Actions pertaining to the Infill Infrastructure Grant - Catalytic Qualifying Infill Area (IIGC) Program
1. ***RESOLUTION - Authorizing the City Manager to accept $43,733,136 in IIGC program award funds to the City of Fresno from the California Department of Housing and Community Development (HCD); and authorizing the City Manager, or designee, to sign all required implementing documents. (Subject to Mayor’s Veto)
2. ***RESOLUTION - Adopting the 21st amendment to the Annual Appropriation Resolution (AAR) No. 2023-185 appropriating $43,733,136 from the IIGC Program awarded by HCD for capital improvement projects. (Requires 5 Affirmative Votes) (Subject to Mayor’s Veto)
Body
RECOMMENDATIONS
It is recommended that Council approve the actions pertaining to the IIGC Program, allowing the City of Fresno (City) to participate in the IIGC Program, accepting and appropriating the program award funds from HCD for the implementation of capital improvement projects, and authorizing the City Manager, or designee, to sign all required implementing documents.
EXECUTIVE SUMMARY
On March 30, 2023, the City Council approved the City’s grant application to HCD for up to $45 million in funding for the IIGC Program for catalytic capital improvements, including water, wastewater, and structured parking. On August 22, 2023, HCD provided the City with a Conditional Award Commitment for the IIGC Program, in the amount of $43,733,136. HCD has indicated time is of the essence in satisfying the terms and conditions of the City’s Conditional Award. Within 60 calendar days of the Conditional Award Commitment, a legally sufficient Resolution is required. Upon receiving required documentation, HCD has committed to delivering an execution copy of the Standard Agreement relative to this Conditional Award within 90 calendar days.
Adopting the resolution authorizing the City Manager to accept the IIGC Program Award funds in the amount of $43,733,136 from HCD and sign all implementing documents will allow the City to participate in the IIGC Program and fund the catalytic capital improvement projects that will support necessary infrastructure for planned housing and new investments in residential and mixed-use buildings in Downtown Fresno.
Adopting the 21st amendment to the AAR will appropriate $43,733,136 from the IIGC Program awarded by HCD for the funding of designated capital improvement projects in Downtown Fresno.
BACKGROUND
A total of $105 million was made available by the State of California through its 2022-23 fiscal year for IIGC, $90 million of which was dedicated to large jurisdictions such as Fresno. HCD estimated the maximum award for large jurisdictions would be between $15 million and $45 million. The grant amount for capital improvements was determined through a calculation of the number of housing units supported within the identified Catalytic Qualifying Infill Area, the bedroom count of these units, and the density and affordability of the proposed housing. However, none of the IIGC funding may be utilized for the construction or development of housing units - funding is strictly limited to capital improvement projects.
CONCEPT PROPOSAL - PHASE 1: On December 29, 2022, HCD opened a grant portal to announce the IIGC Program guidelines, and the availability of $105 million in IIGC funds. The City submitted a Downtown Fresno Concept Proposal - Phase I application on February 3, 2023. HCD received concept proposals for Phase I, totaling $760 million in requests.
The City’s Concept Proposal identified a Certified Quality Improvement Area in Downtown Fresno, including a portion of Chinatown, bound by E Street, Van Ness Avenue, East Tuolumne, and Ventura Streets. The Concept Proposal supported a request for $45 million in catalytic capital improvement projects that would support planned housing. Although the housing units were important in calculating the maximum grant amount, any potential funding award was limited to capital infrastructure projects listed in the grant application. The Concept Proposal identified water, wastewater, and structured parking improvements - all important parts of an important part of catalyzing downtown investment and accelerating new investment in residential and mixed-use buildings.
Key stakeholders assisted with the development of the Downtown Fresno Concept Proposal, including agencies with expertise and experience in previous and future planning efforts, visioning, and engagement. Stakeholder engagement included the Fresno Housing Authority, State Center Community College District, Central Valley Community Foundation, Housing Successor Agency to the Redevelopment Agency of the City of Fresno, and private developers and property owners.
PHASE 2 APPLICATION: On March 10, 2023, HCD confirmed the City’s eligibility, and invited the City to apply for the IIGC Program - Phase II by no later than April 10, 2023. The Phase II application enhanced work previously done through Phase I. On March 30, 2023, the City Council approved the City’s application for up to $45 million to the IIGC Program for catalytic capital improvements, including water, wastewater, and structured parking. The City’s application was submitted to HCD by the extended deadline of April 13, 2023. Nearly 30 community agencies provided input and letters of support.
CONDITIONAL AWARD: On August 22, 2023, HCD provided the City with a Conditional Award Commitment for the IIGC Program, in the amount of $43,733,136. The Capital Improvement Projects approved for award include:
- Water $14,310,000
- Sewer $16,809,421
- Street Work (Tuolumne/Van Ness) $913,715
- Structured Parking (North End Fulton) $11,700,000
OVERVIEW: The City aims to grow from the 3,000 residents currently living in the downtown core, to more than 10,000. The IIGC Program is an opportunity to provide the infrastructure that will support the development of under-utilized and vacant land into higher-density housing. The IIGC Program will bring important improvements to aging and insufficient local infrastructure.
Additionally, investments in infrastructure in Downtown Fresno have the potential to become a best practice for walkable neighborhoods, which will allow residents to live more healthy and sustainable lives. Walkability and proximity to a variety of transit options also aligns with climate goals to reduce the average number of vehicle miles driven. Without the capital improvements described, the desired development of the neighborhood is likely to mirror years past - on a slower and smaller scale. Significant infrastructure investment is necessary, and the proposed projects represent true catalytic change. Fresno’s density, equity, transit, commercial, walkability, and climate goals cannot be achieved without adequate infrastructure.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a “project” and is therefore exempt from the California Environmental Quality Act Requirements.
LOCAL PREFERENCE
Local preference is not applicable because this item does not involve public contracting or bidding with the City of Fresno.
FISCAL IMPACT
There is no impact to the General Fund. Approval of the Resolution will allow the City to receive IIGC Program Award funds in the amount of $43,733,136 for designated capital improvement projects.
Attachments:
1. Resolution: Accepting IIGC Program Award Funds
2. Resolution: 21st Amendment to Annual Appropriation Resolution No. 2023-185
3. Map of Catalytic Qualifying Infill Area (CQIA)
4. Capital Improvement Project Descriptions